Retirement Planning information from Barclays Stockbrokers - Investments permitted in a SIPP
Investments permitted in a SIPP

Which investments can I hold in a Self Invested Personal Pension (SIPP)?

Since 2006, there have been no restrictions on what investments you can hold within a SIPP. However, Her Majesty’s Revenue & Customs (HMRC) can make heavy tax charges for ‘inappropriate’ use of a pension fund, e.g. buying holiday homes, vintage cars, boats etc.

Investments you can hold in a SIPP

Compared to personal and stakeholder pensions, a SIPP offers a far greater choice of investment opportunities. In practice though, very few SIPP providers will accept all types of permissible investments into their products – for example, very few will take unlisted private equity, and not all SIPP providers will accept commercial property.

Since a SIPP is to provide that all-important income in your retirement, please bear in mind that they are for experienced investors who have the expertise and time to manage their own pension investments. These investments can fall in value like any other and if they do, this may leave you without enough income in retirement. For these reasons, if you aren’t experienced or don’t have the time to manage your investment, you may be better providing for retirement through a personal pension. 

Investments allowed in personal pension vs Barclays Stockbrokers SIPP

SIPP investments

Investments you can’t hold in a SIPP

SIPP trustees and administrators will not allow completely unrestricted investment selections that they believe will create or cause a tax charge. Also, under a trustee’s ‘duty of care’, they may not accept assets that:
  • Can’t be easily valued, e.g. complex offshore investments
  • Are difficult to price, e.g. private equity
  • Could be considered personal use assets, e.g. bonded wine
  • Contain a physical asset, e.g. gold bullion
  • Are complex in the way they are structured or traded, e.g. holdings that have a high amount of lending built in or that are not subject to regular pricing.
  • Your SIPP provider can confirm which investments you can and can’t hold in a SIPP.

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